WASHINGTON — President Trump announced Tuesday that the federal government and Anduril Industries are investing a total of $6.6 billion to build critical components for Virginia-class submarines in Baltimore, a joint effort meant to boost US maritime dominance.
The shipyard, known as Arsenal-2, will be supported by $3.7 billion in capital from California-based Anduril and another $2.9 billion from a contract between the company and the US Navy.
The facility will be constructed at Sparrows Point, site of a shipyard and a former Bethlehem Steel plant, to produce torpedo tubes and eventually ship sections — including bows and sterns, among other components, an industry official said.
A nuclear-powered U.S. Navy submarine cruises into the Navy Port at Port Canaveral, Florida, Wednesday, March 8, 2023. SOPA Images/LightRocket via Getty Images
Trump said in a speech later near the project site at Tradepoint Atlantic that the effort will make the US both “feared” and “respected” on the world stage.
“We will build the future of America’s navy right here in Baltimore. And it will be a future of peace through strength,” the president added. “We have never been a stronger country than we are right now.”
Trump also gave a shout-out in his remarks to Baltimore Ravens cornerback Marlon Humphrey as well as teammates Tyler Loop, Ryan Eckley and Nicholas Moore.
“Say hello to your quarterback,” he called out to the players, referring to Lamar Jackson. “He’s a little bit injured. Tell him I know his mother. I met his mother a few times in Palm Beach.”
More than 3,100 new permanent jobs will also be created as a result, which prompted Maryland Gov. Wes Moore to tout the new Anduril facility — despite claiming he was un-invited from the ceremony Tuesday afternoon.
“President Trump is willing to work with anyone to revitalize our manufacturing sector, which is why the White House graciously invited Governor Moore to attend today’s event as a guest,” a White House official said in response.
“It’s unfortunate that the Governor is now making a multi-billion-dollar announcement about himself by throwing a tantrum over a federal initiative that will bring sorely needed jobs back to his state thanks to President Trump.”
An aerial view of Inner Harbor in Baltimore, Maryland, showing downtown skyscrapers and waterfront marinas. New Media Systems – stock.adobe.com
Trump thanked “Deal Team Six” at the Pentagon for finalizing the contract with Anduril, which is run by engineering wunderkind Palmer Luckey, who recently got appointed to a Department of War panel on the future of the military dubbed “Project Meridian.”
“This delivers on President Trump’s promise to bolster America’s defense industrial base while revitalizing our manufacturing industry, creating over 13,000 direct and indirect jobs and driving $2 billion in annual economic output,” said White House deputy press secretary Anna Kelly.
“In line with the president’s maritime action plan released earlier this year, the Trump administration is rebuilding US shipbuilding capacity and capabilities, reforming workforce, education and training, protecting our maritime industrial base, and eliminating burdensome industry regulations.”
US President Donald Trump gestures during a rally at Pinnacle Bank Expo Center in Grand Island, Nebraska, Tuesday, Oct. 6, 2026. REUTERS
The US currently has 26 Virginia-class submarines and is supposed to be on pace to build two per year.
The nuclear-powered Virginia-class attack submarines are the successors to the Cold War-era Los Angeles-class submarines.
“China competes with us,” a senior administration official explained. “Not only at sea … going navy to navy, but also, you know, the way that China … very strongly dominates in the area of commercial shipping.
Anduril Industries founder Palmer Luckey reacts during an interview with Reuters, Saturday, September 19, 2026, in Taipei, Taiwan. REUTERS
Trump signed an executive order in April 2025 meant to restore America’s maritime dominance, which emphasized countering China’s control of commercial shipping.
The Anduril facility as an additional shipyard will be helpful in making the US more “competitive” in that effort, administration officials suggested.
In April 2026, the Navy cancelled a Biden-era plan to overhaul the USS Boise, a Los Angeles-class submarine, and redirected billions in funding toward Virginia-class subs.
Under former President Joe Biden, the Navy had awarded a $1.2 billion contract to renovate the Boise but costs had ballooned in the years since.